August 26, 2010

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Headline News

News About Credit Unions

Compliance/Regulatory Affairs News

Govermental Affairs News

Financial Services/Marketplace News

Education & Networking Opportunities

News From Credit Unions

Chapter News

Financial Education News

Marketing News

Technology News

Remote Deposit Capture Subject of White Paper

Classifieds

Service Center Operation Selling Branch Equipment

Headline News

Piedmont Chapter Hosts State Lawmakers for Annual Legislative Night

Three Piedmont area legislators received a warm welcome from credit union members Aug. 19 when the Piedmont Chapter held its annual legislative night. State Sen. Roscoe Reynolds (D-20), Del. Ward Armstrong (D-10), and Del. Don Merricks (R-16) thanked credit unions for their community service, and for their work during the past General Assembly in turning what one of them admitted was a "bad bill" allowing banks to take over credit unions into a compromise that served all parties well. [more]

League Webinars Now Sport On-Demand Feature

Our newest webinar training option is an on-demand web link which is a recording of the live event including audio, visuals, and handouts. We even provide the presenter's e-mail address so you may ask follow-up questions. No need to attend the live event! This web link can be viewed anytime 24/7, beginning six business days after the Webinar and will expire six months after the live program date.

But there's more…As an added bonus, you will also receive a free audio/visual CD-ROM. The CD includes the original audio/visual presentation, the question and answer sessions, handouts, and presenter's email address. Use the on-demand link or this "off-the-shelf" training program to train where and when you choose! View our Webinar options here.

League Resources: Just a Click Away

The League Web site features a robust search feature designed to help you find what you need quickly. Learn more about conducting searches on the League Web site here!

News About Credit Unions

CUs' Asset Quality Continues to Show Improvement

Credit unions continued to see improvement in their asset quality in the second quarter while also remaining diligent in reserving against future losses. According to Callahan & Associates' First Look Program, industry delinquency and net charges-offs declined for the second quarter in a row. Delinquency dropped another 3 basis points to 1.73% at the end of June; net charge-offs declined 2 basis points to 1.16%.

At the same time, the coverage ratio, or the measure of the allowance account to total reportable delinquency, continued to increase, up 352 basis points since March 30 and an incredible 972 basis points since year end. As of June 30, the industry's coverage ratio stands at 93.74%, meaning that the system has collectively reserved enough to cover almost 94 cents on the dollar for every loan currently delinquent. [more]
[related: Cheney Touts Low CU Chargeoff, Delinquency Rates on CNBC]

Credit Unions Contribute to Local Jobs, Salaries

According to Callahan & Associates' Peer to Peer software, credit unions employ more than 238,000 full or part-time employees nationally. That figure has remained stable since fourth quarter 2008. In a time of widespread layoffs and unemployment, this figure in the face of high share and membership growth indicates credit unions are finding ways to navigate the economic quagmire and emerge with efficient, productive organizations that better serve members.

The number also illustrates how credit unions have maintained their commitment to staff and local communities despite pressures to improve earnings and cope with unexpected NCUA stabilization expenses. [more]

New Round for Bellco's UBIT Case

The U.S. government has notified a court of appeals that it will dispute a federal judge's favorable credit union rulings in a case that challenged the Internal Revenue Service's (IRS) policy toward unrelated business income tax (UBIT) and its application to credit unions. In a suit brought by Bellco Credit Union of Greenwood Village, Colo., Judge Christine M. Arguello ruled in November 2009 that investment products that Bellco sold to its members, including stocks, bonds, mutual funds and annuities, were "substantially related" to Bellco's tax-exempt purposes, and therefore the income from those activities was, under the law, exempt from UBIT. [more]

Entrepreneur: CUs Come to the Rescue on Biz Loans

When their bank slashed the credit limit on their business credit card despite on-time payments, the partners of WheretoFindCare.com, a Ypsilanti, Mich., healthcare information service, moved their accounts to a local credit union and found all the services the small business needed, according to Entrepreneur magazine. [more]

Compliance/Regulatory Affairs News

NCUA Provides Indirect Lending Guidance

Saying that an "improperly planned or loosely managed indirect lending program can lead to unintended changes in the risk profile and financial performance" of a credit union, the National Credit Union Administration released Letter to CUs 10-CU-15 providing credit unions with guidance on how best to build or review their indirect lending programs. [more]

CUNA: Dodd-Frank Rule Burden Lighter Than Some Fear

While the recently enacted financial regulatory reform package contains numerous changes to current financial laws, the Credit Union National Association's Senior Vice President/Deputy General Counsel Mary Dunn said that many fewer of them than most fear, perhaps about 35 of the new anticipated regulations, may impact credit unions, with a number of the changes likely only altering existing regulations. [more]
[related: CUNA Assesses Dodd-Frank Regulatory Burden for CUs]
[related: Congress Could Correct Some Reg Reforms, CUNA Says]

NCUA Treads Above NCUSIF Waterline

The National Credit Union Administration said the reserve ratio for the National Credit Union Share Insurance Fund remained just above the 1.2% mark for July but is projected to fall below the magic number by the end of August, triggering a requirement to bring Congress into deliberations for replenishing reserves.

As in June, NCUA only was able to tread above the congressionally mandated 1.2% level in July because of tens of millions of dollars in projected payments by credit unions will be coming in September and October to maintain their 1% NCUSIF deposit. (Credit Union Journal, Aug. 25)

Will CFPB Find Way Out of the Mortgage Disclosure Quagmire?

Though the regulatory reform law took a crucial step toward simplifying mortgage disclosures by ordering a new consumer protection regulator to harmonize two conflicting statutes, the road ahead will be long and difficult. Several past attempts to reconcile requirements of the Truth in Lending Act with those in the Real Estate Settlement Procedures Act have failed due to regulatory turf fights and a lack of direction from Congress.

But the Dodd-Frank Act gave sole oversight of both laws to the Consumer Financial Protection Bureau, stripping TILA authority from the Federal Reserve Board and Respa oversight from the Department of Housing and Urban Development. This alone may make a big difference on moving forward after decades of struggle to harmonize the two laws. (American Banker Online, Aug. 25)

Governmental Affairs News

Martinsville Bulletin: CU Member Speaks at Rep. Perriello Town Hall Meeting

Andrew Reynolds of Martinsville DuPont recently asked Congressman Tom Perriello (D-5) at a town hall meeting if the representative would support raising the member business lending cap for credit unions. The Congressman didn't answer the question directly, but did praise credit unions, as noted in the last paragraph in the article about the town hall meeting. [more]

Times-Dispatch: U.S. House Districts May See Big Changes Due to Redistricting

An analysis by the research arm of the General Assembly, which will redraw congressional and legislative lines next year, shows that six of the state's 11 U.S. House seats will take in more territory because of declines in population. Five other congressional districts likely will become more compact because of population growth. [more]

Financial Services/Marketplace News

60% of Delinquent Mortgages Not in Loss Mitigation

According to a study from the State Foreclosure Prevention Working Group (SFPWG), 60% of borrowers with mortgages delinquent by 60 days or more are not being forwarded to the servicer's loss mitigation department. The SFPWG is a consortium of the Attorneys General of 12 states, three state bank regulators and the Conference of State Bank Supervisors.

For the past two years, it collected delinquency and loss-mitigation data from the largest servicers of subprime mortgages in the country, totaling 4.6 million loans as of March 2010. While some serious delinquent loans remain ignored, foreclosures are outpacing modifications. [more]
[related: Post-Mortgage Meltdown, Where Do We Go Now?]

Refinancing Homeowners are Going Short

For many refinancing homeowners, going shorter is suddenly more appealing. Fixed mortgages of 15 and 20 years are quickly gaining fans among those who previously held 30-year loans, balloon mortgages and adjustable rates, according to a new report from mortgage giant Freddie Mac.

The number of fixed-rate, 15- and 20-year loans are at their highest level since 2004, the government-controlled company said. "The psychology of the recession" is simply altering how many Americans look at home ownership, said Jason Biro, author of "Saving Your American Dream: How to Secure a Safe Mortgage, Protect Your Home, and Improve Your Financial Future." [more]

A Debate Reopens as More Branches Close

Branches are poised to contract this year for the first time in nearly two decades, rekindling the debate about whether banks will remain anchored in bricks and mortar. At least 925 more branches closed than opened in the first half, putting 2010 on pace to become just the third year since 1934 with a decline in the number of U.S. branches at commercial banks, according to data from the Federal Deposit Insurance Corp. The others were 1992 and 1982, which also involved recessions.

The debate about the fate of branches heats up now and then, most recently in the mid-1990s, when some skeptics said the Internet and automated teller machines would displace branches. They were wrong; relaxed interstate banking rules and other factors led to a surge in branching.

Today's critics argue that things are different this time around. Big branch networks are becoming unfeasible thanks to the latest technology and slow economy. Branches are expensive, relying on heavy traffic to make money, they say. Now that people can deposit checks from their cellphones, experts say branches are becoming outdated. (American Banker Online, Aug. 25)

Credit Card Interest Rates Rise

Credit card interest rates soared in the second quarter to a nine-year spike, according to the market research company Synovate. The average interest rate on existing cards jumped to 14.7% last quarter, up from 13.1% a year earlier, Synovate said. Synovate is the market research arm of Aegis Group plc. The jump created a dramatic spread of 11.45 percentage points between the average credit card interest rate and the prime rate -- the largest margin in 22 years, according to Synovate. [more]
[related: Credit Card Debt: Lowest Level in 8 Years]
[related: Americans Continue to Deleverage with Credit Card Debt Below $5k Per Person]

Boomers Thinking Sacrifice Now for More of the Good Life Later

Baby boomers will make sacrifices now if that's what it will take to live well in retirement, a survey found. About three-in-four of those surveyed (76%) said they would rather spend less now to invest for a comfortable retirement than live the life they want now and spend less in retirement. Forty percent acknowledge that they will have to delay retirement if they are to achieve their desired retirement lifestyle. (American Banker Online, Aug. 18)
[related: Another Threat to Economy: Boomers Cutting Back]
[related: Baby Boomers in Shaky Retirement Position]

Education & Networking Opportunities

Upcoming Webinar: How to Analyze Compliance Risks for Directors

Directors: Gain an understanding of the issues and how to properly position your credit union for success in the new world of compliance during our Sept. 2 Webinar. Credit unions are managing a slew of new and updated regulations, and its essential directors and senior management have a firm grasp of the various laws and regulations that impact their credit union. [more]

Subpoenas, Summonses, Levies & Other Demands for Member Funds

Learn the proper way to handle subpoenas, garnishments, levies, and other demands for member funds by participating in our Sept. 8 Webinar. [more]

Lending In The New Economy Workshop Oct. 5; Learn Strategies That Will Work Today!

The recession has caused credit unions to rethink how they are making loans. Your League's full-day "Lending In The New Economy" workshop will focus on strategies and processes that are working in the New Environment. Presenter Tim Harrington will share strategies to control risk while attracting and making loans. He will present the ‘back-to-basics' lending ideas that have been so essential as credit unions deal with greater numbers of credit-challenged members. Location: Sheraton Park South Hotel (Richmond). Date: Oct. 5. [more]

East Coast Marketing Conference Sept. 22-23

Join credit union marketers and business development specialists from Virginia, North Carolina and beyond for the 2010 East Coast Credit Union Marketing Conference Sept. 22-23, in Richmond, Virginia. With education sessions focused on the conference theme of "Elasticity: Bouncing Back From a Bad Economy," you'll learn from businesses that have bounced above the competition despite the challenging economy. Location: Crowne Plaza Hotel. Room rate is $109. [more] (pdf, 634kb)

Fall Compliance Conference Oct. 19-20

Your League's Fall Compliance Conference will feature education sessions on marketing, advertising/Web site compliance, and a full rundown on new and revised regulations. Mary-Lou Heighes, President of Compliance Plus, Inc., will be the featured presenter at this not-to-be-missed conference. Dates: Oct. 19 and 20. Location: Williamsburg Marriott. Registration information will be available soon!

News From Credit Unions

BayPort Credit Union Announces Teacher Grants

BayPort Credit Union is providing local teachers with 25 grant opportunities up to $300 each to fund innovative financial literacy programs in the classroom. It is the first year BayPort is offering the grants. BayPort teacher grants support elementary, middle and high school, public, private and home-schools. [more]

Come Play With Bronco FCU! Charity Golf Tourney Oct. 11

The 14th Annual Bronco Federal Credit Union (BFCU) CHKD Tournament will be held Monday, Oct. 11, at the Cypress Cove Country Club and Bronco is looking for golfers and sponsors for the event. Tournament donations aid the Children's Hospital of the King's Daughters. Last year's tournament raised more than $10,000 -- making a grand total of over $100,000 that supporters of this event have contributed the last 13 years. [more]

Apple FCU Expands Membership to Loudoun County School Employees

Thanks to a recent membership agreement with Loudoun County Public Schools (LCPS), more than 7,500 system employees will return to ready their schools for the 2010-11 academic year with the added benefit of Apple Federal Credit Union's top-shelf financial products, services and resources. [more]

VACORP Transitions Services from U.S. Central

VACORP Federal Credit Union has ceased processing domestic wire transfers through U.S. Central and begun processing directly through the Federal Reserve Bank, and is planning to withdraw more services. Don Chapman, VACORP president/CEO, said in a letter to member credit unions on VACORP's Web site that the corporate will work with members to "transition them away from using U.S. Central's cash concentration and automated deposit transfer services" and actively pursue "alternatives to U.S. Central's securities safekeeping and international payment services.

"These actions, as well as others we will undertake in the future, will continue to ensure that VACORP and our members have viable, cost-effective alternatives to U.S. Central's products and services regardless of the final outcome of the National Credit Union Administration's (NCUA) conservatorship of U.S. Central," the letter said. [more]

Chartway Welcomes New Lending Vice President

Chartway Federal Credit Union is pleased to welcome a new vice president to the leadership team. Rick Lieberman has been appointed Vice President of Lending. Rick joined Chartway with more than 30 years of experience working with financial institutions, mostly in executive positions at large national banks and finance companies. [more]

Chapter News

Tidewater Chapter Meets Sept. 9

VACORP Federal Credit Union President/CEO Don Chapman and Senior Vice President Harry Simmerman will present a program on credit union investment opportunities and strategies at the Tidewater Chapter's Sept. 9 meeting. They'll also discuss the corporate credit union crisis and the future of VACORP.

Location: Springhill Suites (Norfolk). Time: 6 p.m. social; 6:30 p.m. dinner and meeting. To register, contact Terry Lamm at tlamm@beachmunicipal.org or 757.416.6175. Deadline is Sept. 8.
[meeting flyer and registration information] (pdf, 16kb)

NoVa Chapter Meets Sept. 9; Learn to Avoid an HR Crisis

Jeff Larroca, an attorney with Eckert Seamans, will present a program titled, "The Top Ten Things You Need to Know in Order to Avoid an HR Crisis," at the NoVa Chapter's Sept. 9 meeting. Location: Fair Oaks Marriott (11787 Lee Jackson Memorial Highway, Fairfax). Time: 5:30 p.m. networking; 6 p.m. meeting; 6:30 p.m. dinner; and 7:30 p.m. speaker. Cost: $35 per person. To register, contact John Harwell at Apple Federal Credit Union, no later than Sept. 6, at jharwell@applefcu.org. [more]

Southside Plans Sept. 10 Golf Tourney for CMN, VACUPAC

The Southside Chapter will hold its 4th Annual Golf Tournament on Sept. 10 to benefit Children's Miracle Network and the Virginia Credit Union Political Action Committee (VACUPAC). Location: Cardinal Golf Course, Fort Lee. For entry details and sponsorship opportunities, contact Pam Kenney at 804.452.0736, ext. 181 or e-mail pkenney@fortleecu.org.
[registration information] (pdf, 669kb)

Lynchburg Chapter Meets Sept. 14

The Lynchburg Chapter's Sept. 14 meeting will feature a program on employee burnout. Location: Timberlake United Mthodist Church. Time: 6 p.m. social; 6:30 p.m. dinner; and 7 p.m. meeting. Cost: $15 per person. Reservations: Please call Vickie Smith at 455.1116 or e-mail her at vsmith@mybcu.org by Wed. Sept. 8. [more] (Word document, 93kb)

Hampton Roads Chapter Workshop Sept. 16

The Hampton Roads Chapter will host its Annual Workshop on Sept. 16. Education sessions for the Workshop will include Bank Secrecy Act training (qualifies as your annual BSA training requirement); "Coopetition;" fraud prevention/scams; vendor due diligence; and ACH risk assessment.

Location: Omni Hotel (Newport News). Time: Vendor exhibits - 5 p.m.; 1st education session - 6:15 p.m.; reception - 7 p.m.; 2nd education session - 7:30 p.m. Deadline for registration is Sept. 2. [more]

Roanoke Valley Chapter Schedules Sept. 21 Meeting

Dewey Reynolds, Chairman of the League's Governmental Affairs Committee will be discussing the political scene and the League's legislative agenda at the Roanoke Valley Chapter's Sept. 21 meeting. Your League's Kristen Tatlock will also offer an update on upcoming compliance requirements, including the Secure and Fair Enforcement for Mortgage Licensing Act, the Fair Credit Reporting Act, and FACTA credit score disclosures. Location: Salem Civic Center.

Time: 6 p.m. social; 6:30 p.m. dinner; and 7 p.m. program. To register: Please respond by noon, Sept. 17, with names of attendees to Shana Meadows by e-mail to smeadows@memberonefcu.com or by fax at 540.982.8257.

Central Virginia Chapter Meets Sept. 23

Alan Williams, Regional Manager with DuPont Community Credit Union, will offer a presentation on staff development and coaching at the Central Virginia Chapter's Sept. 23 meeting. He'll focus on the key concepts of leadership, coaching and goals. Location: Comfort Inn Monticello (2097 Inn Drive, Charlottesville, 22911. Time: 6:30 p.m. dinner; 7 p.m. program. To register, contact Tim Schmoyer at tim.schmoyer@pvfcu.org by noon, Sept. 20.
[meeting flyer] (pdf, 481kb)

Richmond Chapter VACUPAC Golf Tournament Oct. 12

The Richmond Chapter will host its Annual VACUPAC Golf Tournament on Oct. 12. Time: 10:30 a.m. shotgun start (check-in 10 a.m.). Place: Hunting Hawk Golf Club (15201 Ashland Road, Glen Allen, 23059). Format: Captain's Choice. Fee: $90, which includes greens fee, cart and dinner.

Proceeds support the Virginia Credit Union Political Action Committee, which enables us to support lawmakers and political candidates who support credit unions and our issues. Deadline for registration is Oct. 6. Sponsors are also needed, with sponsorships starting at just $150!
[information flyer] (pdf, 641kb)
[registration and sponsorship form] (word, 141kb)

Financial Education News

Free RealMoney Training Offered in September

Free RealMoney training workshops are being offered Sept. 29 in Northern Virginia and Sept. 30 in the Hampton Roads area. The NoVa area event is being offered at Northwest Federal Credit Union in Herndon. The Hampton Roads area event will be held at Langley Federal Credit Union in Newport News.

The workshops are free and provide an overview of the new economics and personal finance requirement for schools, content training, educational resources, and includes free lunch and parking. Seating is limited, so it is important that you register NOW if you are interested in attending.
[NoVa-Area Event] (pdf, 3.1MB)
[Hampton Roads Area Event] (pdf, 342kb)

Financial Literacy Summit Slated for Oct. 12

Mark your calendar for Oct. 12 for the Financial Literacy Summit to be held at the Richmond Marriott. Stay tuned for additional details!

Financial Illiteracy Is Killing Us

'That teenagers are allowed to drive, vote and parent, all while not knowing the difference between an asset and a liability, is nothing short of a travesty. Yet that's what we have -- and we are all paying for it," writes Brett Nelson, on Forbes.com. [more]

Financial Planners Reach Out to Gen Y

The Certified Financial Planner Board of Standards says it hopes to bridge the gap between advisers and people in their 20s, who are generally considered atypical financial planning clients. The first part of the organization's initiative, "Lifelong Financial Strategies," is to focus on helping Generation Y (specifically, 18- to 25-year-olds) establish intelligent financial habits and avoid some of the pitfalls older generations have stumbled into. Topics covered include "Fight the Urge to Splurge," "Understand the New Rules," "Do the Car Math," "Keep Score" and "Commit Now to Good Credit Habits."

Not surprisingly, the CFP board is using social media to get its message out. Presentations are to be available on the board's Web site and the consumer advocate page on Facebook. In addition, videos will be uploaded to YouTube and other social media sites.

Eleanor Blayney, the board's consumer advocate, also is to give lessons on an audio podcast. Blayney said that one challenge to reaching young people is that most are not really turning to professionals in any aspect of their lives. They aren't visiting doctors, don't have lawyers and certainly are not using financial planners. (American Banker Online, Aug. 25)

Want to Run Your Own Financial Education Reality Store? Sept. 10 Workshop Teaches You How!

Virginia Cooperative Extension and Virginia's credit unions are sponsoring a half-day workshop that will teach you how to run a reality store simulation. Reality Store events enable students to learn real-world lessons on budgeting and personal finance. Date: Sept. 10. Time: 9 a.m. until noon. Location: Virginia Beach Municipal Center, Building 14. To register, contact Diana Counts at 757.333.7787, ext. 1344 or cumarketing@beachmunicipal.org.
[view program flyer] (pdf, 276kb)

Marketing News

What CUs Can Do With Social Media

Twitter and Facebook are bobbing up and down in the minds of financial services professionals. How do I use Twitter? What is it good for? How do Twitter and Facebook interact? There is uncertainty, but credit unions are diving directly into the deeper ends of the pool and generating exciting results. Callahan and Associates offers a review of social media tips and insight. [mor e]

Mystery Shopping Services Comes Via CUNA Alliance

Credit unions will have access to mystery shopping services and other member satisfaction solutions through a new vendor partnership from CUNA Strategic Services. The Calabasas, Calif.-Informa Research Services provides daily comparisons of bank and credit union market rates at the local, state and national levels, according to CSS.

The company's lineup also includes compliance testing, member satisfaction studies, sales and service evaluations and mystery shopping services to help tailor market information, analysis and targeted recommendations. (Credit Union Times, Aug. 25)

Technology News

Remote Deposit Capture Subject of White Paper

Remote Deposit Capture (RDC) promises to extend greater convenience to members while at the same time potentially reducing operational costs and investment in building infrastructure, according to a new white paper from the CUNA Technology Council.

RDC is when a member or business account holder utilizes an optical scanning device, such as a home-office scanner or mobile cell phone camera, to capture (scan) images of checks for deposit, upload them to a computer on site, and through a software application, edit and send the front and back images securely over the Internet to the credit union for processing and deposit. The paper is available online in the white paper section of www.cunacouncils.org – select the "Tech" tab.

Classifieds

Service Center Operation Selling Branch Equipment

The Credit Union Service Company of Virginia is planning to close two shared branching offices and as a result, has some very attractive offers on equipment. Contact Dave McElhaney at dmcelhaney@cuscva.com for a complete list of available equipment and pricing.